CSR is corporate social responsibility in which a corporation or a business can invest their profit in areas like education, gender equality, hunger, poverty etc. as part of compliance. The relevance of CSR is very significant in today’s free enterprise, to confirm that sustainability of life and business within the future. it's mostly about how the corporate manage the business process to supply overall positive impact on society. CSR may also manage to assist the corporate on increase its brand value, cost saving or for employee retention and engagement.

A lot of Indian Companies are engaged in CSR way before it had been made mandatory. India is that the first country to form CSR mandatory following an amendment to the businesses Act, 2013 in April 2014. The amendment notified within the Companies Act, 2013 requires companies with a net worth of INR 5 billion (US$70 million) or more, or an annual turnover of INR 10 billion (US$140 million) or more, or profit of INR 50 million (US$699,125) or more, to spend 2 percent of their average net profits of three years on CSR.

• Prior to it, the CSR clause was voluntary for companies, though it had been mandatory to disclose their CSR spending to shareholders. CSR includes but isn't limited to the following: Projects associated with activities per the businesses Act,

• Projects associated with activities taken by the corporate board as recommended by the CSR Committee, provided those activities cover items listed within the Companies Act

 When a corporation invests in CSR, they need to know that the expenses towards CSR aren't eligible for deduction within the computation of taxes. On the opposite hand the govt actually considering a re-evaluation of this provision because the corporate is already invested for the society which should deduct their taxes. With this government also considering to re-evaluate other CSR provisions that are recently introduced under the businesses (Amendment) Act, 2019. 

CSR amendments under the businesses (Amendment) Act, 2019

Before this amendment if the corporate is unable to completely spend its CSR funds within the given year, then the quantity can carry and spend within the next year, additionally to the money allotted that year. But after the amendment now if the corporate is unable to spend the CSR fund then they need to deposit that funds into a fund prescribed under Schedule VII of the Act within the tip of the year. This amount must be utilized within three years from the date of transfer, failing which the fund must be deposited in to at least one of the required funds. And if the corporate was unable to spend the CSR funds, the defaulting officer of the corporate is also susceptible to imprisonment for up to a few years, or fine up to INR 500,000, or both.

Since the applicability of mandatory CSR provision in2014, CSR spending by corporate in India has increased significantly. In 2018, companies spent 47% higher as compared to the quantity in 2014-15. after all it's become progressively projected in Indian corporate setting. Now companies have specified departments and teams that develop specific policies, strategies and goals for his or her CSR programs and separate budget to support them.

Amid the COVID-19 outbreak, the Ministry of Corporate Affairs has notified that companies’ expenditure to fight the pandemic are going to be considered valid under CSR activities. there's an amendment to the subsection (1) of section 467 of the businesses Act 2013. Funds is also spent on various activities associated with COVID-19 like promotion of healthcare including preventive healthcare and sanitation, and disaster management.